Satyam Infoway Announces Agreement to Acquire US Based Online Shopping Mall IndiaPlaza in an All Stock
CHENNAI, India--(BUSINESS WIRE)--July 25, 2000--Satyam Infoway Limited (Nasdaq:SIFY - news),
India's premier Internet and eCommerce company announced today that it has entered into an agreement to
acquire 100% of San Jose, CA based IndiaPlaza.com Inc., a leading worldwide India-interest online shopping
In an all-stock deal, Satyam Infoway will acquire IndiaPlaza.com Inc. by issuing 480,000 American Depositary
Shares (ADSs) of Satyam Infoway. (At the closing price of Satyam Infoway's ADSs at Nasdaq on Monday,
24th July 2000 the deal is valued at US $ 8.1 million).
IndiaPlaza.com Inc. (http://www.indiaplaza.com) owns and operates online shopping malls in the USA, UK and
in India. IndiaPlaza.com is very popular with the large and growing Non-resident Indian (NRI) population in the
US, UK and elsewhere and caters to the specific shopping needs of this population with a wide range of
products including music, movies, food and grocery items, gift articles, fashion jewelry, arts and handicrafts,
mithai (sweets), rakhis, Diwali shopping etc. IndiaPlaza.com has strategic tie-ups with vendors and distribution
channels providing a seamless experience to the user in placing the order, tracking it and processing payments.
IndiaPlaza reported revenues of US $ 0.5 Million for the quarter ended 30th June 2000. Under the terms of the
deal, the team that created and operated IndiaPlaza is expected to continue to work for SIFY.
Mr. R. Ramaraj, CEO and Managing Director of SIFY said, "IndiaPlaza will be a solid strategic fit to SIFY's
portal business and complements our IndiaWorld acquisition. IndiaPlaza's shopping mall on the net, logistics
backbone and customer interface is expected to go a long way in raising the eCommerce revenue potential of
SIFY's online community in the US, UK and elsewhere."
Mr. Vijay Shah, CEO of IndiaPlaza said, "We are happy to be part of SIFY's portal